Iridium To Buy Aireon For $366.7 Mln

(RTTNews) - Iridium Communications Inc. (IRDM), a satellite communications company, on Thursday announced that it has agreed to acquire the remaining 61% of Aireon LLC, a provider of Aviation technology solutions for about $366.7 million, bringing the world's only space-based air traffic surveillance system fully under the satellite operator.

Iridium, an existing Aireon owner, will buy the equity interests held by NAV CANADA, AirNav Ireland, ENAV, NATS and Naviair.

The company said that half of the purchase price will be paid at closing and other half on the one-year anniversary.

The acquisition unifies Aireon's space-based ADS-B surveillance and data services with Iridium's satellite constellation and PNT services.

Air Navigation Service Providers covering more than 50% of the global airspace use Aireon data.

NAV CANADA and NATS, which manage North Atlantic airspace and were first to use the service, will sign extended data services agreements through 2035 and beyond, with provisions for space-based VHF communications and other capabilities.

The transaction is targeted to close in early July.

Evercore served as financial advisor, and Cooley and Milbank served as legal counsel to Iridium. PJT Partners served as financial advisor and Hogan LovelIls served as legal counsel to Aireon.

In pre-market activity on the Nasdaq, shares of Iridium were up 0.56 percent, changing hands at $43.33, after closing Wednesday's regular session 3.43 percent lower.